On July 17, 2024, Home Bancorp Inc (HBCP, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Home Bancorp Inc is engaged in attracting deposits from the public and using those funds to invest in loans and securities. The principal sources of funds are customer deposits, repayments of loans, repayments of investments, and funds borrowed from outside sources such as the Federal Home Loan Bank of Dallas.
Performance Overview
Home Bancorp Inc (HBCP, Financial) reported net income of $8.1 million, or $1.02 per diluted common share, for the second quarter of 2024. This represents a decrease from the $9.2 million, or $1.14 per diluted common share, reported in the first quarter of 2024. Despite the decline in net income, the company experienced continued momentum in loan growth.
“We are pleased to report strong earnings and continued momentum across our footprint in loan growth,” said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank.
Key Financial Achievements
Home Bancorp Inc (HBCP, Financial) achieved several notable financial milestones during the second quarter of 2024:
- Loans totaled $2.7 billion at June 30, 2024, up $39.7 million, or 1.5% (6% on an annualized basis), from March 31, 2024.
- Non-interest bearing deposits totaled $746.5 million at June 30, 2024, up $4.3 million, or 0.6% (2% on an annualized basis), from March 31, 2024.
- Net interest income totaled $29.4 million, up $492,000, or 1.7% from the prior quarter.
- The net interest margin (NIM) was 3.66% in the second quarter of 2024 compared to 3.64% in the first quarter of 2024.
- Nonperforming assets totaled $17.0 million, or 0.50% of total assets, at June 30, 2024, down from $22.0 million, or 0.65% of total assets, at March 31, 2024.
Income Statement Highlights
Net interest income increased by $492,000, or 1.7%, from the prior quarter, totaling $29.4 million. The net interest margin improved slightly to 3.66% from 3.64% in the first quarter of 2024. Noninterest income for the second quarter of 2024 was $3.8 million, up $206,000, or 5.7%, from the first quarter of 2024.
Balance Sheet and Cash Flow
Home Bancorp Inc (HBCP, Financial) reported total loans of $2.7 billion at June 30, 2024, reflecting a growth of $39.7 million, or 1.5%, from March 31, 2024. The company's investment securities portfolio totaled $413.5 million, a decrease of $9.3 million, or 2.2%, from March 31, 2024. Total deposits were $2.7 billion at June 30, 2024, up $337,000 from March 31, 2024.
Credit Quality and Allowance for Loan Losses
Nonperforming assets decreased to $17.0 million, or 0.50% of total assets, at June 30, 2024, from $22.0 million, or 0.65% of total assets, at March 31, 2024. The company recorded a $1.3 million provision to the allowance for loan losses in the second quarter of 2024, compared to a $141,000 provision in the first quarter of 2024. Net loan charge-offs were $510,000 for the second quarter of 2024, compared to $217,000 during the first quarter of 2024.
Capital and Liquidity
At June 30, 2024, shareholders’ equity totaled $375.8 million, up $3.5 million, or 0.9%, from March 31, 2024. The company's Tier 1 leverage capital and total risk-based capital ratios were 11.22% and 14.39%, respectively, at June 30, 2024.
Dividend and Share Repurchases
The Board of Directors declared a quarterly cash dividend of $0.25 per share, payable on August 9, 2024, to shareholders of record as of July 29, 2024. The company repurchased 76,858 shares of its common stock during the second quarter of 2024 at an average price of $37.00 per share.
Conclusion
Home Bancorp Inc (HBCP, Financial) demonstrated resilience in the second quarter of 2024 with continued loan growth and a stable net interest margin. However, the decline in net income and increased provision for loan losses highlight the challenges the company faces in maintaining profitability. Investors will be keen to monitor how Home Bancorp Inc navigates these challenges in the coming quarters.
Explore the complete 8-K earnings release (here) from Home Bancorp Inc for further details.
